HARSHA DEVANI,J. - (1.)By this petition under Article 226 of the Constitution of India, the petitioners have challenged the order dated 25.1.2016 passed by the Gujarat Value Added Tax Tribunal (hereinafter referred to as "the Tribunal") in Second Appeal No.258 of 2016 as well as the orders of the authorities confirmed by the Tribunal. The petitioners further seek a declaration that the levy of tax under the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as "the GVAT Act") on the work over service contracts entered into by the petitioners with clients, such as, ONGC, is beyond the legislative competence of the State of Gujarat and therefore, without jurisdiction, bad and illegal. Alternatively, the petitioners seek a declaration that the levy of tax under the GVAT Act on the work over rigs imported qua the work over service contracts is in any case violating Article 286 of the Constitution of India read with section 5(2) of the Central Sales Tax Act, 1956. Alternatively, the petitioners seek a direction to the Union of India to transfer the amount of service tax collected on the work over service contracts towards the alleged VAT liability on the transactions as determined by the authorities of the State of Gujarat.
(2.)The facts as averred in the petition are that the petitioners are engaged in providing services such as, gas compression and work over services to companies such as, Oil and Natural Gas Corporation Ltd. (hereinafter referred to as "ONGC"), who are engaged in exploration of oil and natural gas. The petitioners are duly registered under the VAT Act as well as under the Finance Act, 1994 (hereinafter referred to as "the Finance Act") for the purpose of discharging service tax liability. The petitioners entered into contracts with customers for provision of services. Insofar as the work over services are concerned, the contract specifically provides that the services would be provided by the employees of the petitioners by using work over rigs specifically imported for the purpose of the contract from vendors approved by the customer.
(3.)It is the case of the petitioners that all the contracts relating to work over services during the concerned year are in pari materia with the contract annexed at Annexure "B" to the petition, the salient features whereof are as follows:
"(a) The contract is specifically for provision of work over services by the petitioners and for transfer of right to use the work over rigs to customers such as ONGC.

(b) The work over rigs are to be operated and managed by personnel of the petitioners.

(c) The petitioners are bound to perform services with reasonable skill, diligence and care in accordance with sound industry practice and the responsibility for the quality of the work is on the petitioners.

(d) The petitioners are responsible for the safety of their personnel who would be handling the work over operations.

(e) The petitioners are responsible for arranging the insurance in respect of personnel deputed for the services as well as the equipment, tools and any other belongings of the petitioners including the work over rigs.

(f) The petitioners are responsible for the expenses incurred for the operation of the rigs as well as maintaining the equipment in sound and efficient operating condition.

(g) The contract provides for time norms within which each activity relating to servicing of oil wells needs to be completed.

(h) Consideration towards the contract is fixed on per day basis in accordance with the type of activity carried out with regard to the work over operations.

(i) The rates are quoted inclusive of service tax since the contract is agreed to be a service contract by both the parties.

(j) The petitioners are fully liable for any loss or damage to the work over rigs during the work over operations.

(k) The petitioners are required to give performance bank guarantee for the contract.

(l) Specific work over rigs are required to be imported by the petitioners for carrying out work over operations from the vendors which are approved by the customers and details of which are specified in the contract."